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-current holders can get overdraft facilities
-any amount of money can be withdrawn at any time without giving notice.
-The account holder can conveniently make payment using cheques
-No minimum balance is required to be maintained in current accounts
-Cheques serve as evidence of payment to current account holder
-Periodic statements showing deposits and withdrawals can be provided to the account holder
-Purchases can be made using post-dated cheques. These are cheques to be honored at a later date.
Kavungya answered the question on September 25, 2019 at 13:31
- State four external dis-economies of scale that a firm may get. (Solved)
State four external dis-economies of scale that a firm may get.
Date posted: September 25, 2019. Answers (1)
- On 1st January 2007, Nancy Traders had shs 8000 in cash and sh. 60,000 at bank. During the month, the following transactions took place.
2005
January 18...(Solved)
On 1st January 2007, Nancy Traders had shs 8000 in cash and sh. 60,000 at bank. During the month, the following transactions took place.
2005
January 18 : Paid Shamisi Traders shs 17,000 by cheque less 2000 cash discount
“20 : Sold goods for sh.24,000 cash less by 5 % discount.
“29: Banked all the cash except 6,200.
Required:
Enter the above transactions in a three column cash book and balance it off.
Date posted: September 25, 2019. Answers (1)
- Outline four factors that an entrepreneur will consider when determining the most viable business opportunity.(Solved)
Outline four factors that an entrepreneur will consider when determining the most viable business opportunity.
Date posted: September 25, 2019. Answers (1)
- The following table shows the quantity demanded for fish by two consumers; A and B.
State four possible reasons why B demands more fish at every...(Solved)
The following table shows the quantity demanded for fish by two consumers; A and B.
State four possible reasons why B demands more fish at every price that A.
Date posted: September 25, 2019. Answers (1)
- The following balance sheet relates to Jubilee traders.
The following transactions took place during the month of April 2011.
(i)Received cash Kshs 15,000 from debtors
(ii)Paid creditors Kshs...(Solved)
The following balance sheet relates to Jubilee traders.
The following transactions took place during the month of April 2011.
(i)Received cash Kshs 15,000 from debtors
(ii)Paid creditors Kshs 10,000 cash
(iii)Bought office furniture for Kshs 20,000 cash.
Prepare a balance sheet as at 30th April 2011.
Date posted: September 25, 2019. Answers (1)
- The condition given below describes the various market structures. Write the correct market structure against each of the conditions.
(a)Market structure determiner price for the product
(b)There...(Solved)
The condition given below describes the various market structures. Write the correct market structure against each of the conditions.
(a)Market structure determiner price for the product
(b)There is free entry and exit.
(c)Market structure with many sellers of different product.
(d)Product involved is homogeneous
Date posted: September 25, 2019. Answers (1)
- State the benefits that an investor could derive from a stock exchange market.(Solved)
State the benefits that an investor could derive from a stock exchange market.
Date posted: September 25, 2019. Answers (1)
- Mali had the following assets and liabilities in 1st January 2008.
Premises 800,000
Debtors 40,000
Bank 80,000
Creditors 70,000
Cash 60,000
Stock 62,000
Bank loan 380,000
Required:
Prepare opening journal entries to record...(Solved)
Mali had the following assets and liabilities in 1st January 2008.
Premises 800,000
Debtors 40,000
Bank 80,000
Creditors 70,000
Cash 60,000
Stock 62,000
Bank loan 380,000
Required:
Prepare opening journal entries to record the above information.
Date posted: September 25, 2019. Answers (1)
- The following relate to Ekerubo traders as at 30/09/2006.
Stock 1 -10-05 7,500
Purchases 65,000
Sales 85,000
Return inwards 1,000
Mark-up 25 %
General expenses 12,200
Required:
Prepare a trading, profit and loss...(Solved)
The following relate to Ekerubo traders as at 30/09/2006.
Stock 1 -10-05 7,500
Purchases 65,000
Sales 85,000
Return inwards 1,000
Mark-up 25 %
General expenses 12,200
Required:
Prepare a trading, profit and loss A/C for the period ended 30-9-2006
Date posted: September 25, 2019. Answers (1)
- People hold money for various reasons. Identify the motive for holding money in each of the following cases
(i)To meet hospital expenses..
(ii) To pay for...(Solved)
People hold money for various reasons. Identify the motive for holding money in each of the following cases
(i)To meet hospital expenses..
(ii) To pay for daily milk from Mama Maziwa.
(iii) To counteract future decline in prize
(iv)To meet routine transport expenses
Date posted: September 25, 2019. Answers (1)
- From the following list of items, classify them to either internal or external environment.
(i) Employees
(ii) Inflation
(iii) Technology applied
(iv) Invested funds
(v) Cultural factors
(vi) Tools
(vii) Entrepreneur
(viii) Political...(Solved)
From the following list of items, classify them to either internal or external environment.
(i) Employees
(ii) Inflation
(iii) Technology applied
(iv) Invested funds
(v) Cultural factors
(vi) Tools
(vii) Entrepreneur
(viii) Political factors
Date posted: September 25, 2019. Answers (1)
- The following balance sheet was extracted from the books of Kirui traders on 1st April 2011.
The following transactions took place during the month of April...(Solved)
The following balance sheet was extracted from the books of Kirui traders on 1st April 2011.
The following transactions took place during the month of April 2011.
4.04.2011 Mrs Kirui sold her personal assets for sh.30000 receiving payment by
Cheque which she invested in the business.
10.04.201 She purchased goods for sh.29000 on credit from Mutai
19.04.2011 She returned goods worth sh.3000 to Mutai after they were found defective
30.04.2011 She sold goods for sh.12000 cash
Required
Open the relevant ledger accounts, record the above transactions and balance them off.
Date posted: September 25, 2019. Answers (1)
- Mr. Kisuiya insured his house with an Insurance company for sh.1,000,000. After some months Mr. Kisuiya’s house was completely destroyed by fire. Highlight five reasons...(Solved)
Mr. Kisuiya insured his house with an Insurance company for sh.1,000,000. After some months Mr. Kisuiya’s house was completely destroyed by fire. Highlight five reasons which may make the Insurance company not to compensate Mr. Kisuiya
Date posted: September 25, 2019. Answers (1)
- Unemployment is a problem in any economy in the world. Explain five measures that the Kenyan government may take to reduce this problem.(Solved)
Unemployment is a problem in any economy in the world. Explain five measures that the Kenyan government may take to reduce this problem.
Date posted: September 25, 2019. Answers (1)
- Give four incentives that a government may give investors to encourage development of firms in a certain area.(Solved)
Give four incentives that a government may give investors to encourage development of firms in a certain area.
Date posted: September 25, 2019. Answers (1)
- For each of the following transactions identify the book of original entry in which the transaction should be recorded.
(a)Goods worth sh.4,000 returned by a client
(b)Goods...(Solved)
For each of the following transactions identify the book of original entry in which the transaction should be recorded.
(a)Goods worth sh.4,000 returned by a client
(b)Goods were purchased for sh.120,000 on credit
(c)Returned goods worth sh.6,200 to the supplier
(d)Sale of office furniture worth sh.80,000 on credit
Date posted: September 25, 2019. Answers (1)
- State four ways in which the government may promote local trade.(Solved)
State four ways in which the government may promote local trade.
Date posted: September 25, 2019. Answers (1)
- The following Trial balance was obtained from the books of East Traders for the year
ended 30.06.2011
Prepare East Stores profit and loss account
(Solved)
The following Trial balance was obtained from the books of East Traders for the year
ended 30.06.2011
Prepare East Stores profit and loss account
Date posted: September 25, 2019. Answers (1)
- The information below was extracted from the books of Ssisa Stores for the year
ended 31.12.2011
Opening stock sh.75,000
Closing stock sh.25,000
Turnover sh.900,000
Margin 25%
Determine:
(a)Gross profit
(b)Rate of Turnover(Solved)
The information below was extracted from the books of Ssisa Stores for the year
ended 31.12.2011
Opening stock sh.75,000
Closing stock sh.25,000
Turnover sh.900,000
Margin 25%
Determine:
(a)Gross profit
(b)Rate of Turnover
Date posted: September 25, 2019. Answers (1)
- Outline four advantages of a systematic arrangement of goods in a warehouse.(Solved)
Outline four advantages of a systematic arrangement of goods in a warehouse.
Date posted: September 25, 2019. Answers (1)